Decision - Housing Revenue Account Budget 2009/10 Reduction in Rent Increases

(1)       That Cabinet notes the extract from the proceedings of the Housing Cabinet Member Meeting held on 3 June 2009.

(2)       That Cabinet approves the amendments to individual rent increases and decreases in line with rent restructuring principles as determined by the latest Government Subsidy Determination issued in May 2009.

1.     The council’s constitution requires that the council seeks approval for the setting of tenants’ rents in line with the Local Government and Housing Act 1989.

1.     Rents are set in accordance with the Government’s rent restructuring guidance and increases are in line with the Housing Subsidy Determination.  The Housing Subsidy Determination controls rent setting by removing resources from local authorities through non compliance. The current 2009/10 Rents have been approved based on the original determination which calculated an average increase of 5.45% for Brighton and Hove tenants. This report recommends reducing the 2009/10 increase from 5.45% to 2.37% based on the revised subsidy determination received in May 2009. The alternative option would be to remain with increases at the current level, which would make rents less affordable to tenants in the current economic climate.